RadioShack's quarterly loss more than triples to $98.3 million

RadioShack

David Paul Morris / Bloomberg

RadioShack continues to struggle in its turnaround efforts. The Texas company on Tuesday reported its ninth consecutive quarterly loss. Above, pedestrians walk past a RadioShack outlet in San Francisco last week.

RadioShack continues to struggle in its turnaround efforts. The Texas company on Tuesday reported its ninth consecutive quarterly loss. Above, pedestrians walk past a RadioShack outlet in San Francisco last week. (David Paul Morris / Bloomberg)

The former Walgreens Co. executive said RadioShack's mobile business was particularly weak because of "lackluster consumer interest" in its current assortment of handsets. "This resulted in disappointing sales and gross margin performance," he said.

Shares for the Texas company fell as much as 14% Tuesday morning. In late morning trading, RadioShack shares were down 14 cents, or 9.25%, to $1.40.

The company is in the middle of an overhaul effort that includes remodeling 100 of its stores to "concept stores." The updated outlets are aimed at allowing consumers to test out gadgets and interact with sales staff.

Efforts to close its underperforming stores are being challenged by lenders, the company said. It may only be able to close a fraction of those 1,100 stores.

In its earnings statement for its fiscal first quarter, ended May 3, the company said it was moving forward with a previously announced partnership with Quirky, a New York invention company, to stock its products in RadioShack stores.

Magnacca, who has been chief executive for about a year and half, has said that the "RadioShack turnaround will take time."